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With 2024 proving more positive for the UK property market than many experts initially predicted, 2025 is primed to offer buyers, sellers and investors incredible opportunities, with widespread predictions of a ‘buyer’s market’ for house hunters in the year ahead due to increased property availability. 2025 will be a ‘buyer’s market’, but what does this mean? According to property company Hamptons, transaction numbers for the UK market are expected to increase this year as a result of first-time buyers, who accounted for a record 31% of all sales in 2024. With new buyers currently facing less competition compared to the pandemic-era markets, they also have a slightly larger selection to choose from, allowing them to buy the right property at the right price point. That said, upcoming changes to stamp duty land tax in April could also mean the current heightened transaction numbers are inflated as a result of a potential rush to buy property before the changes come into effect. Stamp duty land tax Property market professionals are expecting to see the number of house sales increase over the next few months as buyers try to finalise purchases ahead of the stamp duty changes scheduled for April. Changes to the current stamp duty thresholds will see house buyers in England and Northern Ireland start paying stamp duty on properties over £125,000, instead of over £250,000, the current threshold. First-time buyers currently pay no stamp duty on homes up to £425,000, but this will drop to £300,000 in April. As a result, first-time buyer activity is expected to see a boom as buyers rush to finalise purchases before the deadline. That said, it’s worth noting that most transactions can take several weeks if not months to finalise, and moving ahead soon is recommended for anyone hoping to close before the new thresholds kick in. House prices are still on the rise According to the Nationwide house price index, house prices ended 2024 at 4.7% higher than at the start of the year, meaning that the average home in the UK cost £269,426 at the end of December. Additionally, house prices are forecast to rise by 3% across Britain in 2025, followed by 3.5% in 2026 and 2.5% in 2027, according to Hamptons. House prices have been following an upward trajectory in recent months due to a drop in mortgage rates, rising wages and an easing of price inflation, which ultimately puts less pressure on buyer’s wallets. Dropping interest rates The downward direction of mortgage rates in recent months has been a significant force influencing buyer sentiment, with decreased monthly mortgage costs inspiring improved confidence amongst prospective buyers, prompting the moderate house price growth and increased numbers of transactions the market has enjoyed over the past few months. Market analysts are widely predicting that the Bank of England will further cut interest rates throughout the year, possibly as early as next month, allowing lenders to cut the cost of new fixed mortgage deals. In fact, experts are now predicting that the Bank of England will cut rates three times by the end of 2025. This, along with potentially rising wages, should improve housing affordability in 2025. Tailor my Property With conditions set up to allow the UK property market to flourish in 2025, there are certain opportunities primed for property investors to explore further, particularly before the stamp duty land tax deadline arrives. Tailor my Property has an extensive network of tax, property and investment professionals who can assist you with tailoring a strategy best suited to your unique property market aspirations.

2025 looks bright for the UK property market

2025 is primed to offer buyers, sellers and investors incredible opportunities.

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Despite a number of ups and downs throughout the year, 2024 turned out better than most expected for the UK property market. Inflation was near, or at, target, for much of the year, and the Bank of England started its interest rate cutting cycle, creating positive momentum that will flow over into the new year. Below are some of our UK property market predictions for 2025. House prices are set to rise According to forecasts from property platform Rightmove, house prices across Great Britain are set to rise in 2025. Rightmove predicts that national average asking prices will increase by 4% in 2024, their largest prediction for price growth since 2021. The property platform expects that the number of homes for sale will remain high next year, anticipating a higher number of around 1.15 million transactions in 2025. Mortgage rate reductions in 2025 According to Rightmove the average five-year and two-year fixed mortgage rates are likely to be around 4% by the end of next year, based on current market trends. This is lower than the current 4.8% and 5.08% for the five-year and two-year fixed rates respectively, and will likely help improve affordability and further boost consumer confidence. Changes to mortgage rates are difficult to predict because they are greatly dependent on the impact of a wide variety of unpredictable factors, including global financial markets, the cost-of-living crisis, geo-political tensions and inflation. Stamp duty land tax In September 2022, the Government announced a temporary increase to the thresholds above which stamp duty land tax must be paid. The temporary increase is due to end on 31 March 2025, meaning the market is likely to see a particularly busy first three months of the year as first-time buyers, home-movers and investors all try to complete planned purchases and avoid higher taxes. While this date might seem far away, buyers and sellers alike should note that an average residential property transaction takes between 12 and 16 weeks to complete, and could take even longer. From 31 March 2025 the stamp duty rates on a standard residential purchase of a freehold property for a UK resident will be 2% above £125,000 and up to £250,000, 5% above £250,000 and up to £925,000, 10% above £925,000 and up to £1,500,000, and 12% above £1,500,000. By completing the transaction before the stamp duty changes come into effect, a buyer can save a significant £2,500, meaning that it may be worthwhile for residential buyers to bring forward their property plans and take advantage of the current stamp duty rates before the increase takes effect. Rent Most property experts predict that the supply and demand imbalance across the rental market will persist in 2025, with rents expected to continue rising throughout the year, but at a slower rate and more in-line with the long-run average. Demand for rental homes has soared since 2020, consistently pushing up average asking rents. Property platform Zoopla found that between 2021 and 2024 average UK rents increased by 27%, with wages only increasing by 19% during the same period. According to their data, the imbalance between demand and supply of rental properties has narrowed, but at the end of 2024 the number of available rentals was still 18% lower than before the Covid-19 pandemic. This means that landlords advertising properties to rent in the new year will need to find a balance between growth that reflects their rising costs and what tenants can afford, but that rental properties are still providing consistent returns on the investment. Good regions to explore for investment in 2025 Below are some of the key areas worth exploring for property investment in the UK. Manchester boasts a thriving economic landscape, a growing population of young professionals, and significant investments in major infrastructure. It has one of the biggest student campuses in Europe and specific areas like the city centre, Salford Quays, and MediaCity offer good rental yields and strong potential for capital growth. Liverpool has undergone substantial regeneration in recent years, making it an appealing choice for property investors. The city offers a vibrant cultural scene, some top universities, and many job opportunities. Edinburgh is recognised as one of the most desirable places to buy property in the UK. This Scottish capital city attracts a significant number of young professionals and students and its strong rental demand and limited supply have contributed to increasing rent levels and high rental yields. Birmingham is a thriving midlands city with a major business sector and excellent transport links. The city's ongoing redevelopment includes the HS2 station, which is expected to drive rental demand thanks to the increased accessibility it offers to the region and other economic hubs. Tailor my property As we usher in 2025 the UK property market is primed to offer buyers new opportunities to invest in property and explore new markets. For those looking to engage with the UK property market, or take advantage before the stamp duty tax changes take effect, Tailor My Property has an expert network of property, mortgage and finance professionals who are able to advise and assist with a wide range of specialist queries. Get in touch today to find out more.

UK property market predictions for 2025

2025 offers property investors many exciting opportunities.

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In a move that had been largely predicted by analysts and financial experts, the Bank of England has cut interest rates for the second time this year. The Bank’s monetary policy committee voted by a majority of eight to one to reduce rates and ease the pressure from high borrowing costs, setting the new rate at 4.75%, down 0.25% points from 5%. That said, the Bank has since warned that inflation is likely to increase as a result of the autumn Budget, higher taxes, and increased borrowing, which will all likely add about 0.5% points to headline inflation by the middle of next year. Inflation, which measures the pace of price rises, fell below the Bank’s 2% target in the year to September, but was always expected to rise again after gas and electricity prices rose last month. It was then forecast to drop back to 2% by 2026, but the Bank now expects that to happen in the following year 2027. The UK property market responds to the interest rate cut  Interest rate cuts typically positively influence the UK property market, leading to increased buyer confidence with lower interest rates which can lead to a surge in buyer activity, higher property prices, and improved return on investment for investors. Following the news of the decision to cut rates the pound rose against the US dollar, while financial markets reacted by betting that Threadneedle Street would cut interest rates fewer times and at a slower pace over the coming year. Chancellor Rachel Reeves quickly welcomed the decision by the Bank, but said she is ‘under no illusion about the scale of the challenge facing households’.  The latest cut has joined a number of favourable conditions for the property market in recent months, with increased supply, heightened buyer and seller activity, and a renewed confidence following the pandemic era. Will the rate be cut further?  The Bank of England’s governor, Andrew Bailey, has indicated that borrowing costs are still likely to come down in future, but he cautioned anyone with expectations that it will happen soon. ‘We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much. But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here,’ he said. With market speculation that Donald Trump’s US election victory will also lead the way for renewed inflationary pressures globally, Bailey believes a ‘gradual approach’ to cutting borrowing costs is required as the Bank waits to see if Trump will impose import tariffs on America’s trading partners. Tailor my Property  Lower interest rates offer exciting opportunities for the UK property market, whether you’re a first time buyer or a seasoned property investor. This cut also comes at an exciting time, as many potential buyers are aiming to complete purchases before the possibility of future stamp duty changes, as hinted in the autumn budget. Consulting with an industry professional is vital to ensure you move in the right direction for your personal, financial and property goals, whether it be renting, buying or selling property in the UK market. Contact Tailor My Property today and connect with our expert network of financial and property professionals.

Will the Bank of England cut interest rates further?

In a move that had been largely predicted by analysts and financial experts, the Bank of England has cut interest rates for the second time.

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Labour’s first budget delivered by Chancellor Rachel Reeves may not have proven as disastrous as many had feared, but it will likely have far reaching consequences for the UK property market over the long term. Below we break down some of the major points outlined in the autumn budget. Stamp duty land tax Stamp duty land tax In a move that was widely predicted, the Chancellor introduced changes to stamp duty land tax, announcing that people who want to buy a second home will be hit with additional charges in a move the government believes will benefit first-time buyers. Reeves claims that this will result in another 130,000 property transactions for first-time buyers and people buying a primary home over the next five years. Currently, buyers of homes worth less than £250,000 in England and Northern Ireland don't pay stamp duty (land tax is set separately in Scotland and Wales). This was doubled from £125,000 in September 2022. The threshold for those buying their first property is £425,000, which was raised from £300,000, but these higher thresholds will come to an end on 31 March 2025. From the start of November the higher rates for additional dwellings went up from 3% to 5% for anyone who already owns a primary home, and is charged on top of the main stamp duty rate. On a property costing £300,000, this means an extra £6,000 in tax. This 2% increase for additional properties will likely be felt more in areas like London and the South East, inevitably leading to higher rents, and will probably result in a smaller demand from second home buyers and investors. This will likely cause a further redistribution of investment towards the lower end of the price spectrum, and sway people away from the capital to the regional markets growing in popularity. Capital gains tax Capital gains tax is a tax paid on the profit made when someone sells certain types of assets, including UK property. Reeves’ budget made changes to capital gains tax overall, but ultimately left the existing rates for residential property as they were. The rates for residential property will stay the same, at 18% and 24%, while the rates for the sale of other types of assets, including commercial property, are being increased. This might ultimately benefit the residential property market, given that thresholds for the tax were frozen while it increased for other assets. This could lead to investors choosing to pursue more opportunities in the residential property market and ultimately will result in positive growth and likely returns. Inheritance tax In the lead up to the budget announcement some senior homeowners might have feared a cut in the inheritance tax reliefs available to them, but the current threshold remains in place after the budget announcement. This means that a couple do not pay tax on the first £1 million of wealth on their main home, and will hopefully add to the incentive for older property owners to downsize and pass housing wealth down through the generations to those who might struggle to get on the property ladder otherwise. Regional areas grow in popularity thanks to government support In a continuation of investment and regeneration plans that are widely benefitting certain regional property sectors, Manchester and the West Midlands have been designated as recipients of increased funding and support. The government announced that ‘integrated settlements’ will be implemented for greater Manchester and the West Midlands at the start of the 2025-26 financial year, along with four other mayoral combined authorities, namely the North East, South Yorkshire, West Yorkshire and Liverpool City Region. This support continues to bolster demand for regional property outside of the capital which is proving too competitive for many potential buyers and renters. With higher education, business and lifestyle developments continuing to flourish in areas like Manchester and the West Midlands, many investors are likely to explore these areas for opportunities that provide higher and more consistent rental yields and property appreciation in years to come. Tailor my Property As the autumn budget’s policies go on to influence the property market it is important to move ahead with caution and strategy so as to best protect your interests and investment goals. Tailor my Property has an extensive network of tax, property and investment professionals who can assist you with tailoring a strategy best suited to your unique market aspirations. Get in touch today to find out more.

How will the UK’s autumn budget impact the property market?

Labour’s first budget will likely have far reaching consequences for the UK property market over the

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In a few days’ time Labour Chancellor Rachel Reeves will deliver her first Autumn Budget statement since the party came into power earlier this year, and experts predict that the UK property market will be one of the sectors to see some big changes. According to property website Rightmove, buyer ‘jitters’ ahead of the budget have slowed down a typical autumn bounce in house prices. The average asking price for a UK home rose 0.3% month on month to £371,958 in October, a smaller increase than expected at a time of year when the market typically picks up. Below we break down which aspects of the market might be discussed. Energy efficiency As building standards in the UK change to include measures aimed at reducing its carbon footprint, energy secretary Ed Miliband recently confirmed Labour’s plans to tighten the rules, meaning that it is something for property investors to bear in mind for any existing or future property investments.  For landlords, investing in new-build property is one of the most popular and potentially cost-effective ways of ensuring compliance with any upcoming energy efficiency standard changes. Falling inflation Last week the Office for National Statistics revealed that inflation had fallen to 1.7%, its lowest level in three years, and well below the government’s 2% target. This means that property owners will likely benefit from an interest rate cut and a subsequent mortgage rate cut. According to Rightmove, the market is likely to be supported by lower mortgage costs after the budget, and the average five-year fixed mortgage rate was 4.6% last week, down from 6.11% at the peak in mid-2023. Buyer confidence may also get a boost from interest rate cuts by the Bank of England. Experts currently predict that the rate-setters are likely to reduce borrowing costs for a second time next month, and that there is a chance of another drop in December. Capital gains tax Labour has previously said that it won’t implement changes to this tax, which is placed on the gain that arises when you sell an asset, but rumours have been circulating in recent days that this could change. Sir Keir Starmer has already ruled out charging capital gains on someone’s first home, which is exempt under the current system, but did not extend that promise to any rise. An increase in the rate, or a cut in the current £3,000 threshold at which it becomes due, would affect second homeowners, landlords, business owners, shareholders and those selling valuable assets. The Chancellor could either increase the main rate of capital gains tax, which is typically either 10% or 20%, or expand the base of assets liable for the levy. The housing shortage To address the UK market’s growing need for homes, the Labour party has vowed to build 1.5 million houses over the next five years, a rate of house building last seen in the 1960s. Labour has reinstated minimum housebuilding goals for the UK, but on a much more targeted basis, in a bid to give a boost to the areas with the highest need, and this could have the most positive impact on the North and the Midlands. In recent years the strongest returns for landlords and property investors has been found in the property markets of these regions, so a regeneration boost and additional housing could see even greater gains in these locations. The budget is likely to include more information related to this. Stamp duty land tax According to the Institute for Fiscal Studies (IFS), stamp duty ‘has a claim to be the most economically damaging tax in the UK. It makes both housing and labour markets less efficient, as a drag on growth.’ Currently any property sold for £250,000 or less is exempt, while the next £675,000 is subjected to a 5% levy, which reaches a peak of 12% for the most expensive homes. Stamp duty currently raises the sizeable sum of £13 billion a year and an increase worth around £1.5 billion is already scheduled for April 2025, so it is unlikely that any other changes will be announced in this week’s budget. One likely announcement in the budget however is a 1% increase in the stamp duty surcharge for overseas buyers. This would make buying UK properties pricier for foreign investors but it could mean less competition in the market for UK buyers. Tailor my Property Consulting with an industry professional is vital to ensure you move in the right direction for your personal financial and property goals, whether it be renting, buying or selling property in the UK, particularly with the potential market changes arising from the Autumn budget. Tailor my Property’s expert network of property, finance and investment professionals will be able to assist you with assessing the market and moving ahead with peace of mind and clarity. Get in touch today to find more.

The UK property market braces for Labour’s Autumn budget

Experts predict that the UK property market will be one of the sectors to see big changes in the Autumn budget.

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As the UK property market responds to changing interest rates, newly developing areas and a continuing supply and demand crisis, rent prices have reacted accordingly across the country. Rents have risen by an average of 5.4% in the last year, and the average rent for new lets in the UK is at £1,245 according to property platform Zoopla. Which factors fuelled the current state of the UK rental market? The latest data indicates that demand for renting has cooled slightly over 2024 but remains high by pre-pandemic standards. The post-pandemic years have seen demand for rented homes rise to record highs which, together with falling housing supply, pushed rents higher. Rental demand started to increase in 2021 as the economy re-opened thanks to the resumption of international travel, alongside changes in visa rules for workers and students at a time when the UK jobs market was also recovering.  The jump in mortgage rates over the latter half of 2022 and 2023 also made buying a property more expensive, keeping potential buyers in the private rental sector and increasing the demand for rental properties. Winter will likely cool market conditions slightly Rental prices across the UK have risen sharply over the past year but data indicates that the lower 5% increase in September could prove that prices are beginning to soften, a trend that may continue as winter approaches. According to the latest Goodlord Rental Index, year-on-year figures have generally been higher throughout the year, with reports of 7% increases in former months. The average rental cost for a property in England was recorded at £1,147.26 in December 2023, and softer conditions are common for the market in winter as less social factors like university terms and job relocations tend to take place over the festive holiday period. Will rent prices remain elevated? According to Zoopla there are currently 18% more rental homes available than this time last year, as lower mortgage rates recently enabled some renters to exit the rental market to buy their first properties. Despite this though there are still 24% less homes available than before the pandemic, which is limiting choice for renters as the housing shortage continues to impact the market. As the government slowly tries to increase the supply of affordable housing the private rented sector will likely continue to see high demand from those on lower incomes, and higher competition for a small pool of properties means that landlords have an opportunity to set prices in their favour. As a result it seems likely that elevated rental prices are here to stay for the foreseeable future, even if with the slight fluctuations predicted for the winter months. Which areas offer the best rental yields? The UK’s largest cities have recorded some of the greatest growth in average rents, averaging over 10% per year for the last three years. This pace of rent rises has proven unsustainable and means that affordability is now starting to impact rental growth in major centres. As a result, London and other major cities across the UK have been leading the slowdown in rental inflation in recent months.  According to Zoopla the greatest slowdown has been in the capital, where rents are rising at just 2.5%, down from over 12% for London properties last year. Property website Rightmove’s figures for the third quarter of 2024 across Britain show that the average rent advertised for London properties reached a record of £2,694 per month recently. Rental growth is also slowing quickly across the UK’s other largest cities, the so- called ‘core cities’, with rents 5.8% higher over the last year, down from 10.7% a year ago according to Zoopla. These cities include Nottingham, Bristol, Manchester, Liverpool, Sheffield, Newcastle, Birmingham, Leeds, Edinburgh, Glasgow and Cardiff. Rental inflation in non-city areas continues to run at an above-average rate of 6.8% - 7.4%-a-year. This reflects high demand being pushed into more affordable areas, often adjacent to the larger cities which are key employment centres. Landlords and investors brace for the Autumn budget As the market prepares for Chancellor Rachel Reeves’ budget on October 30 th some landlords are bracing for a potential Capital Gains Tax rise, as well as new Energy Performance Certificate regulations for and potential mentions of the Renters Rights Bill, all factors which could impact the rental market significantly. These potential tax and policy changes mean that it is imperative for landlords and property investors to consult industry professionals to ensure they navigate the market with their best interests in mind. Tailor my Property offers an experienced network of property, investment and financial professionals who can assist with specific goals and queries across the broader United Kingdom. Get in touch today to find out more.

UK rental prices are expected to continue rising

Rents have risen by an average of 5.4% in the last year, and the average rent for new lets in the UK is at £1,245 according to Zoopla.

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I’m a non-resident, so would I have to cash-buy? In short, absolutely not. What is true is that the non-resident lending environment is very different to that for domestic UK borrowers – there's a more limited field of options to choose from, interest rates are likely to be a little higher, and the max loan size smaller. But, at the same time, there’s nevertheless an established market of options. Working with a variety of brokers, we have access to the whole of this market, which consists of around 15 buy-to-let lenders. Some of these will only be available to British citizens, but that certainly isn’t the case across the board. As a non-British resident or citizen, you can still typically borrow up to 75%, with rates more or less comparable to those for British citizens. Further, if you’re buying property to use yourself rather than rent out, there’s a limited but more competitive field of mortgage options to choose from. Regardless of whether it’s a buy-to-let or residential mortgage, you don’t need to have credit history in the UK. Lenders are happy to accept proof of income in overseas currencies, and a lack of background in the UK.  Are rental guarantees always a positive thing? Particularly overseas, as part of large-scale, investor-led developments, properties are often advertised with one, two, or even longer fixed periods of rent assured by the developer. At face value, this sounds extremely appealing – landlords don’t have to rely on tenants and have the security of knowing they’ll have income coming in regardless.  It’s also true that, on occasion, we’ve put properties to clients that do have rental guarantees in place, as part of a wider investment case that we think stacks up.  In most cases, however, look beyond the surface and rental guarantees become a little more problematic. Very often, a rental guarantee goes hand-in-hand with a highly inflated property price, so in effect this income is ‘baked into’ the amount the investor is paying upfront.  Also, the definition of ‘guaranteed’ needs some scrutiny. In reality, rather than rely on the financial stability of the tenant, landlords are relying on the developer, who like tenants will only be able to pay rent if they have the capital to do so. For these reasons, something that Tailor My Property find much more appealing are completed properties that have sitting tenants in place. This means investors aren’t running the same risk of paying an above-market price, and have much more control over the tenants in their property, whilst still receiving rent from day one. Will I always be paying a premium on new-build properties? It’s absolutely true that new-builds can be more expensive than traditional, resale properties. Particularly in Asia, and in the Middle-East, there’s a lot of large-scale, off-plan developments advertised, replete with glossy brochures and models, and which come with gyms, swimming pools, and prices that are far above the going rate for the local area. They’re also the kind of properties that, in our opinion, are less appealing to local buyers and renters. In other words, there’s a reason they’re being marketed almost exclusively overseas. That being said, we also believe there are many advantages to buying the right kind of new-build. Firstly, they tend to be far more hands-off than older properties with immediate wear and tear to address. In terms of being protected, buying new build typically gives you a 10-year warranty against structural defects, and assurances that the building conforms to current building, and fire and safety standards in the form of EWS1 certification. Further, energy-efficiency has become a real industry buzzword, with soaring utility bills giving rise to demand for modern, more sustainable properties with cheaper running costs. This is also supported via lenders with the offering of green finance products. So, what we’re seeing is a swell in demand for new-builds, amongst investors, owner-occupiers and renters alike. The challenge, then, is identifying what kind of new build is the right kind of property, as opposed to those that are inflated and less appealing to a local demographic. That’s where Tailor My Property can help. Receiving different properties from our partners on a daily basis, we filter those that we believe make sense from those that we think don’t, and focus on these with our clients. As a general rule of thumb, we concentrate on small as opposed to large-scale new build developments, built with a design and architecture that is sensitive to the history and existing character of the area, or that retain the features and identity of the building if it’s a refurbishment. Is UK property all about London? Historically, the UK has been relatively monocentric as a housing market, with London dominating when it comes to volumes of transactions – particularly amongst international investors.  Indeed, London continues to represent long-term reliability, with historical trends demonstrating consistent gains over virtually any 10-year period, supported with extremely strong rental occupancy. That being said, the landscape has certainly changed in recent years, with a more even redistribution of investment across the UK.  In part, this is because of the London market itself. Yes, it still makes sense over long time periods, but of late price growth has been in negative territory and five-year forecasts predict shallow, albeit positive, changes in prices.  Added to this, whilst occupancy levels are high, rental yields in percentage terms track behind the UK average, meaning it is harder for the number to stack up on a cash-flow basis. At the same time, regional areas have really emerged as appealing investment locations in recent years, driven by political support, infrastructure changes, commercial relocations, and the subsequent influx of potential renters into core regional cities.  Data over the last few years clearly underlines this, with price growth outstripping London in cities such as Manchester and Birmingham, and forecast to continue doing so in the short to medium term.  Therefore, there’s nowadays much more to UK property than London. There are various locations, each with different rental expectations, price growth and trajectories over different timespans.  What Tailor My Property are here to help with, therefore, is in identifying a client’s priorities, and subsequently the location that it most attuned to their objectives.  Is it always best to buy through a limited company? Purchasing a UK through a limited company is becoming increasingly common for buy-to-let investors, including those living overseas, and there are a number of potential benefits to doing so. Chief amongst these is the paying of a flat rate of corporation tax on rental income, as opposed to tiered income tax.  The ability to earn shares rather than rental receipts also gives greater flexibility, as does the ability to incorporate shareholders in the company. Fortunately, lenders are slowly adapting to this by accepting applications from companies, and some of the core non-resident lenders will now lend in this scenario.  However, it’s also true that the lending landscape remains more limited for non-residents compared to buying in their own name, and investors should expect to be paying a slightly higher interest rate as a result. Add this to the costs of setting up and maintaining the accounts for limited companies, and the benefits of purchasing through this structure could be negligible, if not non-existent.  This is particularly true for smaller properties where the rental income is relatively low, and when you don’t already own additional UK properties.  The more accurate assessment, therefore, is that purchasing through limited companies can be highly beneficial dependent on personal circumstances – the level of rent on the property; whether you own property already; whether you plan on returning to the UK; you and your family’s future plans for your property portfolio; and various other factors.  For this reason, we’d highly recommend speaking to a tax advisor who can undertake personalised tax planning with you – something we can help to set up.

UK property: Five questions and misconceptions

Tips for expats looking to explore the UK property market.

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As the summer months come to an end and the market goes into an anticipated winter slow-down there are several indicators suggesting that both demand and supply remain positive for the UK housing market. Savills’ predictions Since Savill’s last November forecasts the outlook for 2024 has largely improved as a result of promising economic conditions and lower borrowing costs. At the beginning of last November Savills forecast that house prices would fall by an average of -3.0% in 2024 and that housing transactions would remain at around 1m for the year. At that time a 75% loan to value mortgage from Nationwide on a two-year fix cost 5.34% and mortgage approvals were down below 50,000 per month. As a result of a more stable market and improved buyer sentiment in 2024 they now expect UK house prices to rise by 2.5% this year. Post-summer house prices The latest market data indicates that UK house prices hit a two-year high last month, in a sign that the property market has recovered from the aftermath of Liz Truss’s infamous mini-budget that sent borrowing costs soaring in 2022. Asking prices were also up by 0.8% in September, according to Rightmove, double the typical month-on-month average for this time of year, pushing the average cost of a property to £292,505. The north-west of England reported the strongest annual growth at 4%, while London continues to have the most expensive property prices in the UK, at an average of £536,056, an annual increase of 1.5% compared with last year. Long term predictions show a similar trend, and the north west continues to offer investors and buyers exciting opportunities as enthusiasm for cities like London wanes thanks to a rising number of digital nomads who can work from anywhere and a growing sentiment among first time buyers purchasing for a higher quality of life. With its prime location, buzzing student population and growing popularity for major companies to set up new bases, north west cities like Manchester have seen exciting house price growth in recent years, with Savills predicting growth will hit 28.8% by the year 2028, the highest of its predictions across the UK. Manchester is currently undergoing regeneration in the city center and surrounding areas, with many properties available for purchase, and with the average cost still far below what you can expect to pay in London, averaging £246,891 in the last 12 months, it’s an exciting prospect for buyers and sellers. On the other hand, Savills’ five year prediction for London is the lowest out of the nation, at just 14.2%. Demand for property in the capital and the city’s population growth has outpaced its development, and according to a study by the Institute for Fiscal Studies, house prices in London are £21,000 higher over five years than they would have been if the capital had kept pace with the rest of England’s. Mortgage rates Increased market activity this year has been supported by falling mortgage rates. Lending rates had been dropping in the lead-up to the much anticipated cut to the base rate that occurred at the start of August when the Bank of England dropped the rate to 5%. Several lenders are now offering loans with rates below 4%, with Barclays and Nationwide launching five-year fixed rates at 3.71% and 3.74% respectively, tempting many first time buyers who had previously delayed plans to join the property ladder. Long term market forecasts Oxford Economics’ forecast for GDP growth over the next five years has increased from 7.2% to 8.9%, and wage growth predictions grew from 15.8% to 16.4%. This combined with interest rate cuts has led to Savills updating its five-year UK forecast from 17.9% to 21.6%, and the distribution of growth is also now expected to be slightly more even over the five-year period. A strong economic performance in 2025 and 2026 will support buyer sentiment and likely further stimulate the UK property market. Tailor my Property With the property market showing signs of consistent buoyancy, now might be the perfect time to move ahead with property and investment plans. Consulting with an industry professional is vital to ensure you move in the right direction for your personal financial and property goals, whether it be renting, buying or selling property in the UK market. Contact Tailor My Property today and connect with our expert network of financial and property professionals who can assist and advise as you explore and navigate potential opportunities

Savills offers positive predictions for the UK property market

There are several indicators suggesting that both demand and supply remain positive for the UK housing market.

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As the UK property market shows promising signs in the wake of a Labour victory and decreased interest rates by the Bank of England, one problem continues to pose a huge challenge. Over the last few decades the UK has fallen far behind other wealthy nations in Europe when it comes to building new homes, driving a severe shortage that has wide-reaching repercussions for the property market and its potential buyers. An analysis by Bloomberg found that the failure to keep housing production on track has led to 4.3 million missing homes, roughly five decades of production, which is greater than the number of current existing dwellings in all of London. The crisis is only intensifying, with population growth out-pacing housing completions at the fastest rate since the 1940s, and average house prices across the UK soaring almost 70% in the last 15 years, making it impossible for many young Britons to join the property ladder. Below we break down how the Labour government attempts to tackle the housing crisis and what that means for the UK property market. What went wrong? The UK’s sluggish housing development has largely been blamed on the country’s development planning protocol dating to the late 1940s, when a system was introduced that required permission to build from a planning authority controlled by local residents. This makes it difficult to propose building even in places where new homes are allowed thanks to a ‘not in my backyard’ mentality of local residents. Around the same time, amid concerns about urban sprawl, protected ‘green belts’ were created around cities to restrict development. Established more than 70 years ago, the green belts cover about 13% of England and aimed to limit the growth of large built-up areas, or large towns merging into one another. Today there is huge variation around where new homes are being built, with the vast majority of development happening either in city centres or on the very edges of cities. Meanwhile, half of all suburban neighbourhoods build less than one home each year as a result of the current system. As a result the housing shortage has made it difficult for people to relocate for good jobs and for companies to attract talented workers in certain areas. With so many people unable to access suitable housing there is an increase in overcrowding, young people being forced to live with their parents for longer, impaired labour mobility and a difficulty for existing homeowners to level up and grow with their changing needs. Labour’s plans To address the market’s growing need for homes, the Labour party has vowed to build 1.5 million houses over the next five years, a rate of house building last seen in the 1960s. Part of the government's strategy is to build new towns by expanding small communities or establishing settlements, reviving an idea from the 1940s. Within days of gaining office this year, Britain’s finance minister Rachel Reeves announced that the government would be stepping in to unblock many major stalled housing projects plaguing the market. To overcome the issue of public resistance the government has reintroduced mandatory building targets for local authorities that will cumulatively aim to deliver 370,000 homes a year. Officials have said they will rely on private developers, not on local councils, which were key contributors in the past. In another new development, some low-quality ‘green belt’ land will be freed up to become part of a 'grey belt' to allow new homes to be built. The government has previously described the ‘grey belt’ as ‘poor quality and ugly areas’ on parts of protected land. These include land on the edge of existing settlements or roads, as well as old petrol stations and car parks. Even with the new changes Labour’s proposed number of new houses is a daunting task to undertake, particularly when previous governments have failed at the same task. The Conservatives vowed in 2019 to get housebuilding up to 300,000 a year by the mid-2020s, but builders have never delivered more than 250,000 new homes a year. This means that the house shortage is here to stay for the foreseeable future, along with propped up home prices for buyers. Tailor my Property As always it is highly recommended to consult with a professional to ensure you navigate the current property market and its potential challenges and opportunities accurately. Tailor my Property has a professional network of financial, property and investment specialists who are able to assist, advise and tailor a strategy suited to your individual needs. Get in touch today to find out more.

The UK’s housing shortage challenges the market

The UK property market's housing shortage continues to pose a huge challenge.

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The Bank of England’s first interest rate cut in four years has inspired an upswing in homebuyer activity, with major lenders like Barclays, Halifax, HSBC and NatWest now offering five-year fixed-rate mortgages under 4%, below the Bank’s 5% key rate. NatWest is now offering a five-year rate at just 3.71%, with a 40% deposit and a higher product fee, along with a 3.77% loan with a standard fee on energy-efficient properties. The last time cheaper loans were available was in early September 2022, shortly before the then Conservative prime minister’s disastrous “mini” budget. Comparatively, this time last year the average five-year fixed-rate mortgage was 5.82%. The market is enjoying an uptick in buyer activity and opportunity The improving economic environment in the UK along with increased political stability from the July general election outcome has led to the number of house hunters contacting estate agents for viewings increasing by 19% versus a year ago, according to data from property platform Rightmove. The number of new sellers coming to market also rose 5% this month compared with the previous year, while the number of sales being agreed is 16% ahead of the near-peak mortgage rate period of a year ago. The Bank of England might introduce further cuts The interest rate cuts from 5.25% to 5% on August first were the first since the start of the Covid pandemic, easing pressure on households after the Bank had raised borrowing costs to the highest level since the 2008 financial crisis to tackle soaring inflation. Figures recently showed that inflation rose to 2.2% in July, above the Bank’s 2% target but significantly lower than a peak of 11.1% two years ago after the Russian invasion of Ukraine triggered a surge in energy prices. The Bank is expected to meet on September 19th to make a new interest rate decision but is expected to keep rates on hold at its next meeting before restarting reductions in November where they might be lowered to around 4.75%. Financial analysts widely expect that the Bank will react to decreasing inflation by cutting rates further, possibly to as low as 3.5% by the end of next year. An exciting opportunity for expats With the UK property market offering favourable conditions for buyers, UK expat and foreign national investors are benefiting from a range of competitive mortgage products from lenders, a slight dip in property prices paired with a weaker pound, and an increase of choice in properties coming onto the market. Evidence of UK expat and foreign national investors’ optimism is clear from the number of investors searching for UK properties, with the number of searches for UK property by overseas buyers growing month-on-month and now accounting for 11% of all activity in the first 6 months of 2024, compared to just 6.8% of activity from the same period three years ago. These favourable conditions make now an ideal time for expats and foreign nationals to expand existing portfolios or dip their toes into the UK market for the first time. Tailor my property Individual lenders will set their own mortgage rates and terms so it’s always highly recommended to shop around for the deal best suited to your financial needs and investment goals. Consulting with an industry professional is vital to ensure you move in the right direction for your personal financial and property goals, whether it be renting, buying or selling property in the UK market. Contact Tailor My Property today and connect with our expert network of financial and property professionals who can assist and advise as you explore and navigate these exciting mortgage and property opportunities.

The UK property market responds to favourable interest rate cuts

The Bank of England’s first interest rate cut in four years has inspired an upswing in homebuyer activity.

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The average asking price of properties coming on to the UK property market fell by 1.5% month-on-month in August, according to online property portal Rightmove. The drop in new seller asking prices, equivalent to a fall of £5,708, brings the average price nationally to £367,785. The latest numbers are not a surprise for analysts as August has seen a monthly decline in prices from July for the last 18 years, and the shift is not out of character for the late summer months. That said, the UK’s property market activity has been boosted largely thanks to the cut in interest rates by the Bank of England, which reduced the rate from 5.25% to 5% on 1 August. Rightmove reports a 19% jump in the number of potential buyers contacting estate agents since then compared to the same period in 2023, with the number of new sellers putting their homes on the market up 5% compared to this time last year. Below we break down which areas are offering exciting opportunities for investors. Regional cities are growing in popularity The latest data from Twenty7tec has revealed that Leeds, Bradford, Newcastle, Liverpool, Manchester, and Sheffield now account for 10.99% of all purchase mortgage search activity, marking a 67.1% increase from April last year. This surge in demand highlights a shift in the UK housing market, with more buyers looking beyond London for affordable housing opportunities and quality-of-life. With a rising number of digital nomads who can work from anywhere and a growing sentiment among first time buyers and renters to get a foot on the property ladder away from the capital, different cities are experiencing an increase in interest, and some stand out above the rest. Manchester With its prime location, buzzing student population and growing popularity for major companies to set up new bases, Manchester has proven to be a prime opportunity for investors. According to the Office for National Statistics, the average house price in Manchester in June 2024 was £243,000, 3.9% higher than the average of £234,000 in June 2023. Additionally, the average price paid by first-time buyers was £223,000 in June this year, higher than the revised June 2023 average of £215,000. As for the rental market, the average monthly rent in July 2024 was £1,241, a 12.5% increase from July 2023. With the numbers indicating a growing upward trend in price points, 2024 might be the perfect time to move in on investment opportunities as the city grows in popularity and demand. Birmingham Beaten in size only by London, Birmingham has solidified itself as a hotspot for UK property owners in the post pandemic years. Boasting a thriving economy, impressive infrastructure developments and foreign investment, Birmingham is an exciting area for those looking to grow and strengthen a UK property portfolio. According to the Office for National Statistics, the average house price in Birmingham was £232,000 in June 2024, similar to the revised figure for June 2023. Across the West Midlands, the average house price rose by 3.1% over the same period, while the average price paid by first-time buyers was £204,000 in June 2024, in line with the average the year before. As for the city’s thriving rental market, private rents rose to an average of £1,003 in July 2024, an annual increase of 11.4% from £901 in July 2023. This was higher than the rise in the West Midlands over the year, and means buy-to-let property in Birmingham could offer consistent and reliable yields for property owners and landlords. Edinburgh Boasting six universities, a world-famous cultural scene and countless music venues, art galleries, museums and green spaces, Edinburgh is one of the UK’s most prime student cities and a highly popular opportunity for buy-to-let property investors. The Office for National Statistics's data indicates that the average house price in Edinburgh in June 2024 was £334,000, 5.9% higher than the average of £315,000 in June 2023. Across Scotland, the average house price in June 2024 was £192,000, which was more than a year earlier at £185,000. This means that in June 2024, Edinburgh had the highest average house price in Scotland. As for the highly competitive rental market, private rent prices rose to an average of £1,362 in July 2024, an annual increase of 14.8% from £1,186 the year before and higher than the average rise in Scotland at 8.2% over the year. With the demand for property in Edinburgh growing at a fast pace and the high likelihood of prices increasing with it, now is the ideal time to commit to the exciting opportunities the city offers. Tailor my Property The Bank of England’s early August interest rate cut and the UK’s post-election market confidence have made the second half of the year an exciting time for property investors to move ahead with plans to grow and diversify their UK property portfolios. That said, thorough research and market experience are essential to help identify prime regional locations, understand local market dynamics and assess potential risks. Tailor my Property offers an experienced network of property, investment and financial professionals who can assist with specific goals and queries across the broader United Kingdom. Get in touch today to find out more.

Regional UK cities offer an exciting investment opportunity

We break down which Regional UK cities are offering exciting opportunities for investors.

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Property prices in the nation’s capital are down 0.3% year-on-year, according to the latest data from Zoopla, with the average property price in London standing at £536,000 and buyers paying 96% of the average asking price. Across the UK, however, house prices rose to 2.1% last month, from 1.5% the month prior, the quickest rate since the end of 2022 according to property platform Nationwide, with the average UK house price in July standing at £266,334. The historic demand for London property According to a new study by the Institute for Fiscal Studies, house prices in London are £21,000 higher over five years than they would have been if the capital had kept pace with the rest of England’s. Historically, the demand for London property and the city’s population growth has outpaced its development. Over the 25-year period since 1996 the adult population of London grew by 29%, while the number of homes grew by only 23%. Londoners have also faced other challenges, with £7,500 added to their annual mortgage bill since Liz Truss’s infamous mini budget, and many wanting to move home looking at restricted budgets, high interest rates and limited supply challenges. Increasing buyer confidence In a massive sigh of relief for London’s renters and homeowners, the Bank of England cut interest rates from 5.25% to 5% last week, marking the first cut since the start of the pandemic in March 2020. Increased buyer confidence can also be attributed to post General Election stability and some lenders introducing more attractive mortgage products with sub-4% rates. Analysts predict this will lead to increased demand and spending in the capital’s property market before the year is up. Which London boroughs are outperforming others? There are certain boroughs of London that are experiencing increased demand due to prestige, lifestyle opportunities and commuter convenience into the city. Additionally, ongoing investment in infrastructure and regeneration projects has increased the appeal of these boroughs, attracting buyers seeking long-term value and potential capital appreciation. Projects like the Old Oak Common, a high-speed rail hub station regeneration plan for the Hammersmith and Fulham borough, plans to create thousands of new homes and jobs with the £50 billion rapid rail system proposed between London and the north of England. As a result, Hammersmith and Fulham property has experienced an annual increase of 5.6% and a monthly increase of 0.1%. The average house price in the area was recorded at £1,010,417, making it the fourth most expensive out of all London boroughs. Richmond upon Thames came in third, with an annual change of 5.6% and a monthly change of 1%, bringing the average home price to £949,555. Westminster comes in with an annual change of 4.7%, but a monthly decrease of -0.7%. Home prices in the area average £1,526,159, making Westminster the second most expensive borough, behind Kensington and Chelsea. How do London rent prices compare? According to recent data Tower Hamlets has the highest average rent price this year at £2,229 per month, a rental trend that dates back to back to 2015, when the average rent price in the borough was £1,731 per month. The data has also revealed that Havering has the lowest average rent price at £1,375 per month, with Barking and Dagenham averaging £1,425 per month. According to Rightmove, London has not escaped the national rental crisis, with rents in the capital rising 4% from a year ago in May, and some rents averaging close to £2,500 a month. Tailor my Property The nation’s capital offers an exciting opportunity to invest in some of the most historic, conveniently located and sought after property in the United Kingdom. That said, consulting with a professional ensures that you can protect your assets while maximising on an exciting market opportunity and pursuing your financial and property goals with peace of mind. Get in touch today to consult with one of Tailor my Property’s expert network of property, finance and investment professionals.

Analysing London property prices amidst the broader UK market

London offers an exciting opportunity to invest in some of the most historic, conveniently located and sought after property in the United

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